Indian personalised haircare startup Traya recorded a sharp increase in revenue during financial year 2025-26 (FY26), with operating revenue climbing 72.6% year-on-year to ₹585 crore. However, the seven-year-old company continued to report losses, posting a net loss of ₹29 crore compared with ₹23.5 crore in FY25, according to its consolidated financial statements reviewed by Entrackr.
The results highlight the challenge facing fast-growing direct-to-consumer (D2C) businesses: acquiring customers and increasing sales does not automatically translate into profitability. Traya’s advertising expenditure nearly doubled during the year, while its total expenses rose faster than revenue. The company is expanding its personalised haircare business, but controlling customer acquisition costs and improving unit economics will be important to its next phase of growth.
Key Takeaways
- FY26 operating revenue: ₹585 crore, up 72.6% from ₹339 crore in FY25.
- Net loss: ₹29 crore, compared with ₹23.5 crore in FY25.
- Total income: ₹593 crore, including ₹8 crore from gains on investment sales.
- Advertising expenditure: ₹275 crore, making it the company’s largest expense.
- Total expenses: ₹623 crore, up 70.2% year-on-year.
- Funding: Traya has raised approximately ₹96 crore to date and has reportedly been in discussions for a potential ₹300 crore investment from Verlinvest.
Traya’s FY26 Revenue Jumps 72.6% to ₹585 Crore
Traya’s revenue from operations increased to ₹585 crore in FY26 from ₹339 crore in FY25. The 72.6% growth reflects rising demand for its personalised hair treatment products and expansion of its customer base.
The company’s business model combines hair assessments, personalised treatment recommendations, consultations and customised haircare kits. Customers receive treatment plans designed around their individual requirements, with support from hair coaches and licensed physicians.
According to Entrackr’s review of the financial statements, customised haircare kits were Traya’s sole source of operating revenue during FY26. The company also generated ₹8 crore through gains from the sale of investments.
As a result, its total income reached ₹593 crore, compared with ₹343 crore in FY25.
The distinction between operating revenue and total income matters. The ₹585 crore figure represents income generated from the company’s core operations, while total income includes additional non-operating gains.
Traya Financial Performance: FY25 vs FY26
| Financial metric | FY25 | FY26 | Change |
|---|---|---|---|
| Revenue from operations | ₹339 crore | ₹585 crore | +72.6% |
| Total income | ₹343 crore | ₹593 crore | +72.9% |
| Total expenses | ₹366 crore | ₹623 crore | +70.2% |
| Net loss | ₹23.5 crore | ₹29 crore | Loss widened |
| Advertising expenses | — | ₹275 crore | — |
| Material procurement | — | ₹140 crore | — |
| Employee benefits | — | ₹81 crore | — |
Figures are rounded and based on Entrackr’s reporting of the consolidated financial statements.
The figures show that Traya expanded its revenue substantially, but the company did not translate that growth into improved net profitability. Its net loss increased by approximately ₹5.5 crore during FY26.
Advertising Becomes Traya’s Biggest Expense
Advertising was Traya’s largest expense category in FY26. The company spent ₹275 crore on advertising, nearly twice the amount spent in the previous financial year.
This represented approximately 44% of its total expenditure of ₹623 crore.
The spending reflects the importance of customer acquisition in the D2C haircare market. Traya needs to reach consumers, explain its personalised treatment approach and convert potential customers into paying users.
However, higher advertising expenditure also creates pressure on margins. A company can generate strong sales growth through marketing, but it must ensure that the revenue and repeat purchases generated by those campaigns justify the acquisition costs.
Other major expenses included:
- Material procurement: ₹140 crore, an increase of 68.7%.
- Employee benefits: ₹81 crore.
- Other operating costs: Legal, transportation, technology and administrative expenses also contributed to the increase in expenditure.
Overall, total expenses climbed 70.2% to ₹623 crore from ₹366 crore in FY25.
Traya Continues to Report Losses Despite Revenue Growth
Traya reported a net loss of ₹29 crore in FY26, compared with ₹23.5 crore in FY25.
The company spent approximately ₹1.06 to generate every ₹1 of operating revenue. This indicates that its expenditure remained higher than the revenue generated by its core business.
Two other financial indicators also highlight the profitability challenge:
| Metric | FY26 |
|---|---|
| Spending per ₹1 of operating revenue | ₹1.06 |
| Return on capital employed (ROCE) | -44.7% |
| EBITDA margin | -6.19% |
| Current assets as of March 2026 | ₹174 crore |
The negative EBITDA margin indicates that the company’s operating earnings remained under pressure even before accounting for interest, taxes, depreciation and amortisation.
A negative ROCE also suggests that the business was not generating positive operating returns on the capital employed during the period.
For Traya, the next financial milestone will not simply be reaching a larger revenue number. It will be improving the economics of each customer relationship, reducing the cost of acquiring customers and building a business that can generate sustainable operating profits.
What Is Traya’s Business Model?
Founded in 2019, Traya focuses on personalised haircare and hair-loss treatment plans. The company positions hair loss as a concern that can have multiple underlying causes rather than treating it exclusively as a cosmetic issue.
Its approach combines an initial hair assessment, personalised recommendations and consultations with healthcare professionals. Customers can purchase customised treatment kits through the company’s digital channels.
The model brings together elements of consumer healthcare, e-commerce and personalised wellness.
This approach gives Traya an opportunity to differentiate itself from brands that primarily sell individual shampoos, oils, serums or supplements. Instead, it offers customers a more structured treatment programme.
However, the business also needs to maintain customer trust, product quality and responsible health-related claims as it expands. Repeat purchases and customer outcomes will be important to sustaining long-term demand.
Traya’s Funding and Potential Verlinvest Investment
Traya has raised approximately ₹96 crore in funding to date, according to Entrackr. Its investors include Fireside Ventures, Kae Capital and Whiteboard Capital.
One of its significant investments came from Xponentia Capital, which invested ₹75 crore in April 2024.
Separately, Inc42 reported in October 2026 that Traya was in discussions to raise approximately ₹300 crore from Belgium-based investment firm Verlinvest. The proposed transaction was reportedly being discussed at a valuation of ₹2,500 crore to ₹3,000 crore.
The potential funding round had not been finalised at the time of that report. Its final size, valuation and structure therefore remain subject to confirmation.
Fresh capital could support marketing, product development, distribution and offline expansion. However, additional funding would not automatically resolve the company’s profitability challenges.
The Bigger Picture
Traya’s FY26 results illustrate the growth-versus-profitability challenge in India’s D2C consumer market. The company increased operating revenue by more than 70%, reaching ₹585 crore, but advertising expenditure alone reached ₹275 crore. Its total expenses also exceeded operating revenue, resulting in another annual net loss.
The broader opportunity remains significant as consumers increasingly explore personalised haircare and wellness products. But competition is intensifying, and brands must balance marketing investment with customer retention, product differentiation and operating efficiency. Traya’s ability to convert its expanding customer base into repeat revenue without proportionately increasing acquisition costs will be central to its financial performance.
Looking Ahead
Traya enters its next phase with a substantially larger revenue base and an established position in India’s personalised haircare market. Its potential fundraising discussions could provide additional capital for expansion, while its existing customer base offers opportunities to strengthen repeat purchases and build brand loyalty.
The key financial indicators to watch will be advertising expenditure as a percentage of revenue, EBITDA margin, customer acquisition costs and net losses. If Traya can slow expense growth while maintaining strong revenue momentum, it could move closer to profitability. For now, FY26 demonstrates that the company has achieved considerable scale, but turning that scale into sustainable earnings remains unfinished work.
Frequently Asked Questions
1. What was Traya’s revenue in FY26?
Traya reported ₹585 crore in revenue from operations in FY26, representing 72.6% growth from ₹339 crore in FY25.
2. What was Traya’s net loss in FY26?
The company reported a consolidated net loss of ₹29 crore in FY26, compared with ₹23.5 crore in FY25.
3. Why did Traya report a loss despite strong revenue growth?
Advertising expenditure increased to ₹275 crore, while total expenses rose 70.2% to ₹623 crore. The high cost of marketing, materials, employees and other operations continued to weigh on profitability.
4. How much did Traya spend on advertising in FY26?
Traya spent ₹275 crore on advertising in FY26, accounting for approximately 44% of its total expenditure.
5. Who are Traya’s investors?
Traya’s investors include Xponentia Capital, Fireside Ventures, Kae Capital and Whiteboard Capital. The company has raised approximately ₹96 crore to date, according to Entrackr.
6. Is Traya planning to raise more funding?
Inc42 reported in October 2026 that Traya was in discussions to raise approximately ₹300 crore from Verlinvest. The proposed round and its terms had not been finalised at the time of reporting.
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